AlixPartners forecast the size of potential penalties based on the vehicle emissions levels reported by automakers at the end of 2017. Since then, major carmakers have reduced CO2 emissions through higher sales of electric and hybrid vehicles.
VW Group said it plans to comply with the European rules while FCA has said it will pursue the cheapest option for complying with the rules, a step which may include paying fines.
“If you build heavier cars and have a large market share of diesels you have some homework to do if you want to mitigate possible penalties,” said Elmar Kades, managing director at AlixPartners. “Customers are switching to gasoline and this needs to be compensated with electrification and or hybridization.”
Designing and building both combustion engine and full-electric cars simultaneously costs automakers $2.3 billion per platform per year, the study said.